The Definitive Guide to Same-Day Business Loans & Financing

Disclaimer: Information in the term loan articles is provided for general information only, does not constitute financial advice, and does not necessarily describe Biz2Credit commercial financing products. In fact, information in the term loan articles often covers financial products that Biz2Credit does not currently offer.

Same-day business loans are an option for a fast short term loan to meet the immediate needs of business operators. Same-day funding could help business owners ensure that their next payday isn’t missed, pay an unexpected expense, or jump on an unexpected opportunity.

In this definitive guide, we’ll walk you through everything you need to know about same-day business loans.

What is a Same-Day Business Loan?

Same-day small business loans are a fast short term loan option that allows small business owners to receive funds into their bank account by the next business day. Such an option is typically needed when a business runs into sudden cash flow problems or an emergency, such as building or equipment repairs.

Same-day business loans are normally provided through online lenders rather than traditional banks. That’s primarily because banks are more cautious about to whom they lend money. This caution results in a long application process. A long loan application process will likely also require a long review process.

Traditional banks also closely examine the owner’s credit score, credit profile of the business and its balance sheets, bank statements, cash flow and income statements. Banks often ask for collateral for business loans. The valuation of these assets further lengthens the loan approval process.

Much of the loan terms will be determined by your credit score. If you have excellent credit, you should be able to get a competitive interest rate. If you have fair credit, it may be a bit harder to get an advantageous loan.

Because this is a fast short term loan, this wouldn’t be the best for debt consolidation, or a longer-term financial solution

How to Qualify for a Same-Day Business Loan

A small business borrower will have the following factors analyzed by a provider to determine eligibility for a small business loan:

• Minimum amount of time in business
• Minimum revenue requirements
• Minimum personal and business credit score requirements

Each lender will vary in its online application requirements, criteria to approve borrowers for a quick loan, and loan terms.

Same-Day Business Loan Options

Business Line of Credit

A fast short term loan option is a business line of credit. This is especially true when it comes to small business owners who need business financing options immediately and cannot afford to wait several days for a loan application to be approved.

When you pull from a business line of credit, you will pay interest (calculated using an annual percentage rate) on the amount you use. This makes it appealing for small business owners who need fast funding unexpectedly.

Keep in mind there may be an origination fee for a fast short term loan, and late payment fees if you happen to miss a payment.

Unsecured Business Loans

An unsecured business loan is different than a secured loan as there is no underlying asset for the bank to seize if the borrower doesn’t make payments.

Qualifying for an unsecured business loan through a traditional bank or through the Small Business Administration (SBA) can be a challenge. The requirements for this type of loan are stricter. Interest rates start at 7.5% and a small business must be operational for at least six months to qualify.

Funding can be provided within hours. What’s more, since there is no collateral required, unsecured business loans come with no risk to the personal assets of a small business owner.

This is like a personal loan as it will likely have monthly payments. The repayment period will vary based on the lender and loan terms.

Equipment Loans

Equipment loans have similar characteristics and terms as unsecured business loans, but require collateral. To expedite the loan process, the equipment itself can be used as collateral. Business loan lenders focused on equipment will often have same-day options depending on the kind of equipment that can be used to secure the loan.

Business Credit Cards

Business credit cards allow businesses to pay for expected expenses that they know they can pay off quickly without compromising the financial health of the business. By paying off these balances, a business can gain the type of credit history that can eventually lead to the type of financing available to established firms.

Merchant Cash Advance

A merchant cash advance can also provide a small business with needed capital within the same day. In addition, an MCA doesn’t tie the business to a regular repayment schedule since it is repaid by automatically deducting a percentage of future debit and credit card transactions.

MCAs are easy to qualify for and the funds are allowed to be used in a wide variety of ways. But the high interest rates and short-term repayment can lead a business to take on high levels of debt.

Final Thoughts on Same-Day Business Loans

The biggest advantage of quick business funding is speed. No matter what the funds are needed for or the loan amount, small business owners can have access to the funds they need quickly. This flexibility is especially true for newer businesses or businesses with bad credit.

Same-day business loans also typically have shorter repayment terms. As a result, small business owners will have to repay the short-term business loan at a higher interest rate within a shorter period of time.

Before you agree to any fast short terms loan, be sure to shop your rate around with the limited time you may have to get the lowest rate possible. Check for any prepayment penalties or late fees, along with comparing interest rates from the offers you have. To avoid late fees, consider having your lender schedule you for autopay to make your monthly payments.

Once you agree to a quick short loan, you can get your funds deposited in your checking account potentially within a few hours.

FAQs about Fast Short Term Loans

What is a fast short term loan?

A short-term business loan is a type of financing where a business borrows a lump sum and agrees to repay it.

What is the quickest way to get a business loan?

The quickest way to get a business loan is by applying through an online lender, which often provides approvals within hours and disburses funds within a business day.

What do you need to qualify for a fast short term loan?

You'll typically need a strong credit score, steady business revenue, and proof of your business's operating history.

How does a short term business loan work?

A short-term business loan are fast short term loans that provide businesses with a lump sum of money that must be repaid over a short period.